Morning Call: Brexit breaks down... again
Head of Editorial Content, Saxo Bank
Summary: Today's edition of the Saxo Morning Call sees our team examining the latest defeat for UK PM May as Brexit fatigue sets in against a backdrop of surprisingly calm financial markets.
FX Update: USD soft ahead of November jobs report
The US dollar is soft and has largely remained so despite the choppy direction changes in risk sentiment around trade deal headlines, a possible signal of more weakness to come. While we await the USD reaction to the November payrolls and earnings numbers tomorrow, we have sterling off to the races to the upside and CAD strongly boosted by a more sanguine Bank of Canada.
Macro Monday Week 49: Does "China Strike Back" Amid An Action Packed Week?
The action packed WK 49, kicks off with a bullish sentiment this early Asia Mon Morning. Santa Rally getting earlier & earlier? We have US equity futures up +30-35bp, yields higher as UST reverse from c. 1.77% to c. 1.80/1.81%, DollarYen 109.69 +0.18% higher & Kiwi continues to be on fire 0.6442 +0.31%. The will get decisions out of Australia, India, Canada & Chile, as well as final PMIs, ISMs, NFP & AHE. Watch out for Lagarde's first testimony to European Parliament.
FX Update: Too quiet markets await FOMC guidance, US macro data
Expecting a market-friendly message from the Fed this evening, global markets are about as complacent as we have ever seen them in recent years. It is a classic setup for a sell-the-fact reaction to whatever Powell and company deliver, but the US economic data through early next week and the outcome of US-China trade talks may quickly steal the narrative.
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